Huawei, DP World, Agile print notes; EM has mixed reaction to Treasury moves

By Christine Van Dusen

Atlanta, May 12 – China’s Huawei Technologies Co. Ltd., Dubai’s DP World and China’s Agile Property Holdings Ltd. sold notes as emerging markets debt saw poor liquidity and fairly balanced flows on a Tuesday made turbulent by continued instability in Treasury rates.

“Another day of rate volatility, and this market gyrating against those moves,” a London-based trader said.

There seems to be little consensus on where Treasury rates are heading, another trader said.

Bonds from the Middle East and Asia seemed to view the Treasury moves as positive, and tightened early on Tuesday, another trader said.

High-grade bonds from Asia closed their session between 1 basis point and 4 bps tighter, the London trader said.

“Thirty-year paper outperformed as real-money buyers took advantage of the higher yields and illiquid names,” he said.

Indeed, the 2045s from China-based Cnooc Ltd., China Petroleum & Chemical Corp. (Sinopec) and Malaysia’s Petroliam Nasional Bhd. (Petronas) all closed the early session 5 bps tighter, he said.

“Korea closed unchanged,” he said.

But Latin American bonds suffered on Tuesday, with names like Brazil-based Petroleo Brasileiro SA and Vale SA losing resilience and moving another 5 bps wider, even as Treasuries ended the day flat, a New York-based trader said.

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